If you are looking for how to trade Multipliers on Deriv then this article was written just for you. In the next few minutes, I am going to show you how to trade multipliers on Deriv, placing your first trade and why you should trade multipliers on Deriv.
Trading multipliers bears many advantages for any trader; however, the Deriv platform has not been fully explored. Traders use multipliers as a way of limiting risk and increasing potential profit. When you trade multipliers on Deriv, you cannot lose more than your initial stake.
Don’t be left out, Open a free trading account on Deriv by clicking here
Multiplier trading uses features of both option and CFD margin trading enabling you to take advantage of leverage trading and the downside of options trading.
How to Trade Multipliers on Deriv
How do trading multipliers on Deriv work?
Just like any other form of trade, trading multipliers means choosing between two options, whether the market will go up or down. If you select up, You will earn a profit if the market goes higher than your entry position and vice versa.
Note that if the price goes against your prediction, the trade is automatically stopped when your loss reaches the stop-out point. The stop-out level is the point at which your loss is equal to your initial stake. What a catch!
Just like the name depicts, multipliers double your profit by the value selected on your stake. When the market goes against your prediction, your loss will not be more than your initial stake. Therefore, trading multipliers on Deriv is recommended for all traders including newbies, you have to learn how to control your risk.
How to buy your first multiplier contract on Deriv
1. The first step in any kind of trade is defining your position. This includes defining your trade type, stake amount, and multiplier value. Go to your Deriv platform, choose the asset you want to trade. Proceed to select your trade type as ‘multipliers’ then enter your stake and multiplier value.
2. The second step is setting optional parameters to manage the trade. There are several features that allow you to control your trade such as take profit, stop loss, and deal cancellation. Note that these are optional, however, you are advised to make use of these features. The take profit feature allows the trader to set the target for-profit and once this target is reached the position is immediately closed and earnings deposited into the account.
The stop loss feature allows the trader to set the amount of loss they are willing to take if the market prediction was incorrect. The trade is automatically closed once this target is achieved.
The deal cancellation feature allows the trader to cancel the trade within one hour without affecting your stake amount. However, Deriv charges a small fee for contract cancellation.
3. The last step is to purchase the contract. Once you are satisfied with the position and have assessed the parameters proceed to select either up or down.
4. The best strategy for trading Multipliers on Deriv is price action; to learn more on price action strategy click here
Why trade multipliers on Deriv?
It goes without saying if you are given an opportunity to maximize your profits and limit potential loss, wouldn’t you take it?
Here are the advantages of trading multipliers on Deriv;
1. Limited risk
Trading multipliers can give you more confidence and flexibility when trading in a highly volatile markets. For instance, during major economic events and price goes against your position, you only risk losing what was at stake. In margin trading, the risk management is limited; for instance, a trader risks losing all his deposit when the market goes against his prediction.
The deal cancellation feature ensures that if the market price reaches the stop-out level after a sudden price change the contract is ended automatically with a 100% refund of the stake.
2. More control
You have full control of the market as you can take advantage of features such as take profit, stop loss, and deal cancellation to grow your profit and minimize loses
3. You can Trade 24/7, all year round
Deriv has synthetic indices that imitate real-world market changes to ensure that it runs throughout the year. Deriv also provides expert, responsive, and friendly customer support.
As a beginner, the first step would be to open a Deriv demo account and start practicing trading with $10k worth of virtual funds.